Proposed Collection; Comment Request, 68849-68850 [E6-20055]

Download as PDF Federal Register / Vol. 71, No. 228 / Tuesday, November 28, 2006 / Notices Section 213.3339 United States International Trade Commission TCGS00012 Confidential Assistant to a Commissioner. Effective September 20, 2006. Section 213.3384 Department of Housing and Urban Development DUGS60338 Special Policy Advisor to the Assistant Secretary for Housing, Federal Housing Commissioner. Effective September 13, 2006. DUGS60210 Special Assistant to the Assistant Secretary for Congressional and Intergovernmental Relations. Effective September 20, 2006. DUGS60423 Staff Assistant to the Assistant Secretary for Administration/Chief Human Capital Officer. Effective September 25, 2006. Section 213.33 Merit Systems Protection Board MPSL00001 Chief Counsel to the ViceChair to the Vice Chairman. Effective September 22, 2006. Section 213.33 National Endowment for the Humanities NHGS60077 Senior Advisor to the Chairman to the Chairman. Effective September 13, 2006. NHGS60075 Director of Communications to the Deputy Chairman. Effective September 20, 2006. Office of Personnel Management. Dan G. Blair, Deputy Director. [FR Doc. 06–9434 Filed 11–27–06; 8:45 am] BILLING CODE 6325–39–M SECURITIES AND EXCHANGE COMMISSION Proposed Collection; Comment Request Upon written request, copies available from: Securities and Exchange Commission, Office of Filings and Information Services, Washington, DC 20549. ycherry on PROD1PC61 with NOTICES Extension: Rule 12b–1, SEC File No. 270– 188, OMB Control No. 3235–0212. Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.) the Securities and Exchange Commission (the ‘‘Commission’’) is soliciting comments on the collections of information summarized below. The Commission plans to submit these existing collections of information to the Office of Management and Budget (‘‘OMB’’) for extension and approval. Rule 12b–1 (17 CFR 270.12b–1) permits a registered open-end VerDate Aug<31>2005 15:42 Nov 27, 2006 Jkt 211001 investment company (‘‘mutual fund’’) to distribute its own shares and pay the expenses of distribution out of the mutual fund’s assets provided, among other things, that the mutual fund adopts a written plan (‘‘Rule 12b–1 plan’’) and has in writing any agreements relating to the implementation of the Rule 12b–1 plan. The rule in part requires that (i) the adoption or material amendment of a Rule 12b–1 plan be approved by the mutual fund’s directors and shareholders; (ii) the board review quarterly reports of amounts spent under the Rule 12b–1 plan; and (iii) the board consider continuation of the Rule 12b–1 plan at least annually. Rule 12b– 1 also requires funds relying on the rule to preserve for six years, the first two years in an easily accessible place, copies of the Rule 12b–1 plan, related agreements and reports, as well as minutes of board meetings that describe the factors considered and the basis for adopting or continuing a Rule 12b–1 plan. The board and shareholder approval requirements of Rule 12b–1 are designed to ensure that fund shareholders and directors receive adequate information to evaluate and approve a Rule 12b–1 plan. The requirement of quarterly reporting to the board is designed to ensure that the Rule 12b–1 plan continues to benefit the fund and its shareholders. The recordkeeping requirements of the rule are necessary to enable Commission staff to oversee compliance with the rule. The number of hours required to comply with Rule 12b–1 will vary considerably depending on several factors, including the complexity of the plan and the number of classes of fund shares covered by the plan, and is expected to be higher in the first year following adoption of the proposed amendments than in subsequent years. Based on information filed with the Commission by funds, Commission staff estimates that there are approximately 6,536 mutual fund portfolios with Rule 12b–1 plans. Rule 12b–1 requires the board of each fund with a Rule 12b–1 plan to (i) review quarterly reports of amounts spent under the plan, (ii) annually consider the plan’s continuation (which generally is combined with the fourth quarterly review), (iii) have each fund document the policies and procedures it has implemented to enable it to effect portfolio securities transactions through an executing broker that also distributes the fund’s shares, and (iv) approve those policies and procedures. PO 00000 Frm 00056 Fmt 4703 Sfmt 4703 68849 The number of annual responses per fund portfolio will be four per year. Thus, there will be an estimated 26,144 industry responses (6,536 fund portfolios × 4 responses per fund portfolio= 26,144 responses) in the first year and in each subsequent year. Thus, we estimate that there will be an average of 26,144 industry responses per year over the three year period for which we are requesting approval of the information collection burden. Based on conversations with fund industry representatives, Commission staff estimates that for each of the 6,536 mutual fund portfolios that currently have a Rule 12b–1 plan, the average annual burden of complying with the rule is 100 hours to maintain the plan. This estimate takes into account the time needed to prepare quarterly reports to the board of directors, the board’s consideration of those reports, and the board’s annual consideration of the plan’s continuation. The total burden hours per year for all fund portfolios to comply with current information collection requirements under Rule 12b–1, therefore, is estimated to be 653,600 hours (6,536 fund portfolios × 100 hours per fund portfolio = 653,600 hours). The annual cost of the hourly burden per fund under the rule is estimated to be $11,135.00. Thus, we estimate that the total annual cost to all funds of the Rule 12b–1 hour burden is $72,778,360.00 (6,536 fund portfolios with Rule 12b–1 plans × $11,135.00 per fund portfolio = $72,778,360.00). If a currently operating fund seeks to (i) adopt a new Rule 12b–1 plan or (ii) materially increase the amount it spends for distribution under its Rule 12b–1 plan, Rule 12b–1 requires that the fund obtain shareholder approval. As a consequence, the fund will incur the cost of a proxy. Based on conversations with fund industry representatives, Commission staff estimates that approximately three funds per year prepare a proxy in connection with the adoption or material amendment of a Rule 12b–1 plan. The staff further estimates that the cost of each fund’s proxy is $30,000. Thus the total annual cost burden of Rule 12b–1 to the fund industry is $90,000 (3 funds requiring a proxy × $30,000 per proxy). The collections of information required by Rule 12b–1 are necessary to obtain the benefits of the rule. Notices to the Commission will not be kept confidential. An agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a currently valid control number. Written comments are invited on: (a) Whether the proposed collection of E:\FR\FM\28NON1.SGM 28NON1 68850 Federal Register / Vol. 71, No. 228 / Tuesday, November 28, 2006 / Notices Dated: November 20, 2006. Nancy M. Morris, Secretary. [FR Doc. E6–20055 Filed 11–27–06; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–54795; File No. SR–BSE– 2006–44] Self-Regulatory Organizations; Boston Stock Exchange, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend the Existing BSE Fee Schedules November 20, 2006. ycherry on PROD1PC61 with NOTICES I. Self-Regulatory Organization’s Statement of the Terms of Substance of the Proposed Rule Change Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 notice is hereby given that on November 20, 2006, the Boston Stock Exchange, Inc. (‘‘BSE’’ or ‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’) the proposed rule change as described in Items I, II and III below, which Items have been prepared by the BSE. The BSE has designated this proposal as one changing a due, fee, or other charge under Section 19(b)(3)(A)(ii) of the Act,3 and Rule 19b–4(f)(2) thereunder,4 which renders the proposal effective upon filing with the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested parties. 1 15 U.S.C. 78s(b)(1). CFR 240.19b–4. 3 15 U.S.C. 78s(b)(3)(A)(ii). 4 17 CFR 240.19b–4(f)(2). On June 13, 2006, the BSE filed Amendment No. 3 to SR–BSE–2006–22 (the ‘‘BeX Facility Filing’’), a rule filing submitted in connection with the implementation of the first of two phases of the BeX, a fully automated electronic book for the display and execution of orders in securities. On August 25, 2006, SR–BSE–2006–22 was approved by the Commission.5 On August 3, 2006, the BSE filed, in connection with the implementation of the second phase of the BeX trading system and in connection with satisfying the requirements of Regulation NMS, SR–BSE–2006–30. On September 29, 2006, the Commission approved SR–BSE–2006–30.6 The existing BSE fee schedule will be amended so as to delete all Transaction Fees, Electronic File Access and Processing Fees, and Floor Operation Fees. The Transaction Fees and Electronic File Access and Processing Fees will now be contained in the BeX fee schedule and, in view of the fact that there will no longer be a physical trading floor in the traditional sense once the transition to the BeX fully electronic platform occurs, there is no longer a need for the Floor Operation Fees. The existing Membership and Other Fees will remain in their present form. It should be noted that while BSE Members will continue to be charged the Membership and Other Fees, EAMs will not be charged those fees. That is due to the fact that, although EAMs and BSE Members are treated equally, EAMs do not vote on matters related to mergers, consolidations, dissolution, liquidation, transfer or conversion of the assets of the Exchange and hold nontransferable permits that are solely for trading on BeX. Therefore, EAMs are not required to pay the Membership fees applicable to BSE Members. The BeX fee schedule reflects the new fees associated with the services and products available to BSE Members in the BeX fully electronic environment. The primary categories of new fees set forth in the proposed BeX fee schedule are: transaction fees, including regulatory transactions fees; clearing service fees; facility fees; technology fees; and connectivity fees. Unless otherwise indicated on the fee schedule, all fees are charged on a monthly basis. The following is a description of the foregoing categories: Transaction Fees: Transaction fees in BeX are broken down based upon share price and where they are listed, such as on the Nasdaq Stock Exchange versus another exchange. For securities listed on an exchange other than the Nasdaq that are traded with a share price greater than or equal to $1.00, the Liquidity Provider will receive a $0.0023 credit and the Liquidity Taker will be charged $0.0028 per share. For securities that are listed on the Nasdaq that are traded with a share price equal to or greater than $1.00, the Liquidity Provider will receive a $0.0025 credit and the Liquidity Taker will be charged $0.0028 per share. If a security is listed on an exchange other than the Nasdaq and trades with a share price less than $1.00, the Liquidity Provider receives a credit in 5 See Securities Exchange Act Release No. 54365 (Aug. 25, 2006), 71 FR 52192 (Sept. 1, 2006). information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (b) the accuracy of the agency’s estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information collected; and (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication. Please direct your written comments to R. Corey Booth, Director/Chief Information Officer, Securities and Exchange Commission, C/O Shirley Martinson, 6432 General Green Way, Alexandria, VA 22312 or send an e-mail to: PRA_Mailbox@sec.gov. 6 See Securities Exchange Act Release No. 54546 (Sept. 29, 2006), 71 FR 59161 (Oct. 6, 2006). The purpose of this filing is to amend the existing BSE fee schedule and to establish a fee schedule for the Boston Equities Exchange trading system (‘‘BeX’’). The amendments to the existing BSE fee schedule would delete of fees that are no longer applicable or that will now be associated with BeX. The BeX fee schedule reflects the new fees associated with the services and products available to BSE Members, including Electronic Access Members (‘‘EAMs’’), in the BeX fully electronic environment. The primary categories of new fees set forth in the proposed BeX fee schedule include: transaction fees, including regulatory transaction fees; clearing services fees; facility fees; technology fees; and connectivity fees. The text of the proposed rule change is available on the Exchange’s Web site (http://www.bostonstock.com) and at the Commission’s Public Reference Room. II. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change In its filing with the Commission, the BSE included statements concerning the purpose of, and basis for, the proposed rule change and discussed any comments it received on the proposed rule change. The text of these statements may be examined at the places specified in Item IV below. The BSE has prepared summaries, set forth in Sections A, B, and C below, of the most significant aspects of such statements. A. Self-Regulatory Organization’s Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change 1. Purpose 2 17 VerDate Aug<31>2005 15:42 Nov 27, 2006 Jkt 211001 PO 00000 Frm 00057 Fmt 4703 Sfmt 4703 E:\FR\FM\28NON1.SGM 28NON1

Agencies

[Federal Register Volume 71, Number 228 (Tuesday, November 28, 2006)]
[Notices]
[Pages 68849-68850]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-20055]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon written request, copies available from: Securities and Exchange 
Commission, Office of Filings and Information Services, Washington, DC 
20549.
Extension: Rule 12b-1, SEC File No. 270-188, OMB Control No. 3235-
0212.
    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.) the Securities and Exchange Commission 
(the ``Commission'') is soliciting comments on the collections of 
information summarized below. The Commission plans to submit these 
existing collections of information to the Office of Management and 
Budget (``OMB'') for extension and approval.
    Rule 12b-1 (17 CFR 270.12b-1) permits a registered open-end 
investment company (``mutual fund'') to distribute its own shares and 
pay the expenses of distribution out of the mutual fund's assets 
provided, among other things, that the mutual fund adopts a written 
plan (``Rule 12b-1 plan'') and has in writing any agreements relating 
to the implementation of the Rule 12b-1 plan. The rule in part requires 
that (i) the adoption or material amendment of a Rule 12b-1 plan be 
approved by the mutual fund's directors and shareholders; (ii) the 
board review quarterly reports of amounts spent under the Rule 12b-1 
plan; and (iii) the board consider continuation of the Rule 12b-1 plan 
at least annually. Rule 12b-1 also requires funds relying on the rule 
to preserve for six years, the first two years in an easily accessible 
place, copies of the Rule 12b-1 plan, related agreements and reports, 
as well as minutes of board meetings that describe the factors 
considered and the basis for adopting or continuing a Rule 12b-1 plan.
    The board and shareholder approval requirements of Rule 12b-1 are 
designed to ensure that fund shareholders and directors receive 
adequate information to evaluate and approve a Rule 12b-1 plan. The 
requirement of quarterly reporting to the board is designed to ensure 
that the Rule 12b-1 plan continues to benefit the fund and its 
shareholders. The recordkeeping requirements of the rule are necessary 
to enable Commission staff to oversee compliance with the rule.
    The number of hours required to comply with Rule 12b-1 will vary 
considerably depending on several factors, including the complexity of 
the plan and the number of classes of fund shares covered by the plan, 
and is expected to be higher in the first year following adoption of 
the proposed amendments than in subsequent years. Based on information 
filed with the Commission by funds, Commission staff estimates that 
there are approximately 6,536 mutual fund portfolios with Rule 12b-1 
plans.
    Rule 12b-1 requires the board of each fund with a Rule 12b-1 plan 
to (i) review quarterly reports of amounts spent under the plan, (ii) 
annually consider the plan's continuation (which generally is combined 
with the fourth quarterly review), (iii) have each fund document the 
policies and procedures it has implemented to enable it to effect 
portfolio securities transactions through an executing broker that also 
distributes the fund's shares, and (iv) approve those policies and 
procedures.
    The number of annual responses per fund portfolio will be four per 
year. Thus, there will be an estimated 26,144 industry responses (6,536 
fund portfolios x 4 responses per fund portfolio= 26,144 responses) in 
the first year and in each subsequent year. Thus, we estimate that 
there will be an average of 26,144 industry responses per year over the 
three year period for which we are requesting approval of the 
information collection burden.
    Based on conversations with fund industry representatives, 
Commission staff estimates that for each of the 6,536 mutual fund 
portfolios that currently have a Rule 12b-1 plan, the average annual 
burden of complying with the rule is 100 hours to maintain the plan. 
This estimate takes into account the time needed to prepare quarterly 
reports to the board of directors, the board's consideration of those 
reports, and the board's annual consideration of the plan's 
continuation. The total burden hours per year for all fund portfolios 
to comply with current information collection requirements under Rule 
12b-1, therefore, is estimated to be 653,600 hours (6,536 fund 
portfolios x 100 hours per fund portfolio = 653,600 hours). The annual 
cost of the hourly burden per fund under the rule is estimated to be 
$11,135.00. Thus, we estimate that the total annual cost to all funds 
of the Rule 12b-1 hour burden is $72,778,360.00 (6,536 fund portfolios 
with Rule 12b-1 plans x $11,135.00 per fund portfolio = 
$72,778,360.00).
    If a currently operating fund seeks to (i) adopt a new Rule 12b-1 
plan or (ii) materially increase the amount it spends for distribution 
under its Rule 12b-1 plan, Rule 12b-1 requires that the fund obtain 
shareholder approval. As a consequence, the fund will incur the cost of 
a proxy. Based on conversations with fund industry representatives, 
Commission staff estimates that approximately three funds per year 
prepare a proxy in connection with the adoption or material amendment 
of a Rule 12b-1 plan. The staff further estimates that the cost of each 
fund's proxy is $30,000. Thus the total annual cost burden of Rule 12b-
1 to the fund industry is $90,000 (3 funds requiring a proxy x $30,000 
per proxy).
    The collections of information required by Rule 12b-1 are necessary 
to obtain the benefits of the rule. Notices to the Commission will not 
be kept confidential. An agency may not conduct or sponsor, and a 
person is not required to respond to a collection of information unless 
it displays a currently valid control number.
    Written comments are invited on: (a) Whether the proposed 
collection of

[[Page 68850]]

information is necessary for the proper performance of the functions of 
the agency, including whether the information will have practical 
utility; (b) the accuracy of the agency's estimate of the burden of the 
collection of information; (c) ways to enhance the quality, utility, 
and clarity of the information collected; and (d) ways to minimize the 
burden of the collection of information on respondents, including 
through the use of automated collection techniques or other forms of 
information technology. Consideration will be given to comments and 
suggestions submitted in writing within 60 days of this publication.
    Please direct your written comments to R. Corey Booth, Director/
Chief Information Officer, Securities and Exchange Commission, C/O 
Shirley Martinson, 6432 General Green Way, Alexandria, VA 22312 or send 
an e-mail to: PRA--Mailbox@sec.gov.

    Dated: November 20, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. E6-20055 Filed 11-27-06; 8:45 am]
BILLING CODE 8011-01-P